Zurich Insurance To Sell Italian Life And Pensions Back Book To GamaLife - Quick Facts

(RTTNews) - Zurich Insurance Group AG (ZURVY) announced Monday that its Italian unit Zurich Investments Life S.p.A. has agreed to sell its life and pension back book to the Portuguese insurance company GamaLife - Companhia de Seguros de Vida, S.A.

The life and pension back book is composed of both traditional and unit-linked policies.

The completion of the deal is anticipated to take place in the second half of this year, subject to regulatory approvals.

The company noted that the transaction will see approximately $9.5 billion of net reserves transferred to GamaLife.

On completion of the deal, Zurich's capital requirement under the Swiss Solvency Test is expected to decrease by approximately $1.2 billion, adding approximately 11 percentage points to the Swiss Solvency Test ratio.

In addition, the transaction is expected to increase the company's liquidity by approximately $200 million.

The company said the sale does not change contractual obligations toward policyholders and distributors. Zurich will continue to offer innovative protection and unit-linked solutions to customers in Italy.